Friday, December 21, 2007

Soup Line – Newark, New Jersey – 2007[Image]Today we take a break from our usual comments on the economy andmarkets. We are seeing a lot of mixed signals in the data about thestate and direction of the US economy, but there is one area of the USeconomy where the data are unambiguous: homelessness and hunger.

Below we list ten surprising facts about homelessness from the resultsof the most recent U.S. Conference of Mayors/Sodexho Survey on Hungerand Homelessness (pdf), a survey of America's 24 largest cities.

You might assume that mental illness is the number one cause ofhomelessness, that few homeless seeking food assistance are employed,and that most seeking food assistance are individuals and notfamilies. You might assume that a nation that spends 21 billiondollars a month on a war in Iraq spends more than $420 million peryear to assist its homeless, 11 percent of whom are veterans, so thatfew if any homeless requesting assistance are turned away. And youmight think, with all the news you read about the strong and growingUS economy, that homelessness is declining.

But you'd be wrong.

Ten Surprising Facts about Homelessness in the US

1) Homeless People

It is estimated that persons considered mentally ill account for 22percent of the homeless population in the survey cities; substanceabusers account for 30 percent. Fifteen percent of the homeless in thesurvey cities are employed in full-or part-time jobs. Eleven percentare veterans.

2) Causes of Homelessness

Listed in order of frequency: lack of affordable housing, low payingjobs, mental illness and the lack of needed services, substance abuseand the lack of needed services, domestic violence, unemployment,poverty, and prisoner re-entry.

3) Length of Time People Are Homeless

People remain homeless for an average of 7 months in the surveycities. The average length of time people remain homeless is 24 monthsin Phoenix, 18 months in Louisville, 14 months in Boston, 12 months inDetroit. Eighty-seven percent of the cities report that the length oftime people are homeless increased. Thirteen percent report a decrease.

4) People Requesting Food Assistance

Officials in the survey cities reported that 40 percent of adultsrequesting emergency food assistance were employed. Across the surveycities it is estimated that 54 percent of those requesting emergencyfood assistance were either children or their parents.

[Image]5) Emergency Shelter Requests

Seventy-one percent of the survey cities report an increase in requestfor emergency shelter during the last year. Across the survey cities,the average increase was 6 percent. The increases ranged from 30percent in Los Angeles, 28 percent in Trenton, 22 percent in Detroit,and 18 percent in Miami.

6) Emergency Shelter Requests by Families

Requests for emergency shelter by homeless families with childrenincreased in 63 percent of the survey cities during the last year.Across the survey cities, the average increase in requests foremergency shelter by homeless families with children was 5 percent.

7) Requests for Assisted Housing by Low-Income Families and Individuals

During the last year, requests for housing by low-income families andindividuals increased in 86 percent of the survey cities.

8) People Turned Away From Emergency Shelter

In 88 percent of the survey cities, emergency shelters may have turnedaway homeless families due to a lack of resources.

9) Forecast of Requests for Emergency Shelter during 2006

Ninety-three percent of the survey cities expect that requests foremergency shelter to increase in 2006. Ninety-five percent of thesurvey cities expect that requests for shelter by families to increasein 2006.

10) Requests for Emergency Food Assistance for 2006

Ninety percent of the survey cities expect that their requests foremergency food assistance will increase in 2006. During 2006 requestsfor emergency food assistance by families with children are expectedto increase in 86 percent of the survey cities.

This report came out a year before the Center for Responsible Lendingprojected millions of homes may go into foreclosure over the next fewyears, as "2.2 million mortgage loans with a value of $164B toeventually fail."

While we worry about the stock market, bond yields, and the price ofcommodities, it's important to remind ourselves occasionally thatwhile economic mismanagement may cause many of us to lose money,millions of our fellow citizens stand to lose a lot more than that.